--- title: "Clean Development Mechanism in Nepal" subject: "Energy Environment and Society" chapter: 2 key: "semester_7/energy_environment_and_society:cdm-nepal-potential" source: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/cdm-nepal-potential site: BCT Engineering --- # Clean Development Mechanism in Nepal Energy Environment and Society · Chapter 2: Energy Basics - Asked in: 2069 Chaitra, 2+2 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/cdm-nepal-potential - Whole chapter: https://www.bctengineer.com/md/semester_7/energy_environment_and_society/chapter-2 ## Question What is a Clean Development Mechanism (CDM)? What are the potential areas of CDM in Nepal? ## Short answer CDM is a Kyoto Protocol mechanism allowing Annex I countries to invest in emission-reducing projects in developing countries and receive CERs (1 CER = 1 tCO2e). Potential areas in Nepal include hydropower, micro-hydro, solar, wind, biogas, improved cookstoves, energy efficiency, forestry, waste-to-energy, electric transport, and fuel switching. ## Answer The **Clean Development Mechanism (CDM)** is one of the three flexibility mechanisms of the Kyoto Protocol (Article 12). It allows an industrialised (Annex I) country to invest in an emission-reducing project in a developing (non-Annex I) country and receive **Certified Emission Reductions (CERs)**, where 1 CER = 1 tonne of CO₂ equivalent. These credits count towards the investor's own Kyoto target. #### Objectives - Help developing countries achieve sustainable development. - Help developed countries meet their targets at lower cost. #### Project cycle (in brief) Design (PDD) → national approval (Designated National Authority; in Nepal, the Ministry of Forests and Environment) → validation → registration with the UNFCCC CDM Executive Board → monitoring → verification → issuance of CERs. #### Potential areas of CDM in Nepal 1. **Renewable energy:** hydropower, micro-hydro, solar, wind. 2. **Biogas** (the Biogas Support Programme was among the first CDM projects of Nepal) and improved cooking stoves. 3. **Energy efficiency:** industries, brick kilns (cleaner kilns), and lighting. 4. **Forestry:** afforestation and reforestation, community forestry. 5. **Waste:** landfill gas capture and waste-to-energy. 6. **Transport:** electric vehicles and mass transport. 7. **Fuel switching:** replacing fossil fuels with biofuels or electricity. Note: the CDM carbon market has weakened since 2012, and under the Paris Agreement it is replaced by the Article 6.4 mechanism (Paris Agreement Crediting Mechanism). Nepal's new carbon projects are therefore moving towards the voluntary market and Article 6. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Under the CDM, an Annex I country: A. sells coal to a developing country B. invests in an emission-reducing project in a developing country and receives CERs C. bans emissions in developing countries D. receives CERs without any project Answer: B. CDM is Article 12 of the Kyoto Protocol; the credits count towards the investor's target. (Key point: CDM meaning) 2. What does 1 CER equal? A. 1 kWh of electricity B. 1 kg of CO2 C. 1 tonne of CO2 equivalent D. 1 MW of capacity Answer: C. CERs are measured in tonnes of CO2e. (Key point: CER unit) 3. Which are potential CDM areas in Nepal? A. Only coal mining B. Only petroleum import C. Only nuclear power D. Renewable energy, biogas and improved stoves, energy efficiency, forestry, waste and transport Answer: D. Listed areas include hydro, biogas, brick kilns, afforestation, landfill gas and EVs. (Key point: CDM potential in Nepal) 4. What is replacing the CDM under the Paris Agreement? A. The Article 6.4 mechanism B. Kyoto Article 12 C. The Montreal Protocol D. The Basel Convention Answer: A. CDM weakened after 2012 and is replaced by Article 6.4 (PACM), with new Nepal projects moving to the voluntary market and Article 6. (Key point: Current status) ## Related in Energy Environment and Society - [CDM and sustainability issues](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Acdm-sustainability-issues) — Energy Environment and Society, chapter 2 - [Development, energy rate, HDI of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Adevelopment-energy-hdi-nepal) — Energy Environment and Society, chapter 1 - [Hydro energy for Nepal's development](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Ahydro-opinion-nepal) — Energy Environment and Society, chapter 3 - [Avoiding Nepal's energy crisis](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Anepal-energy-crisis-solutions) — Energy Environment and Society, chapter 2 - [Energy sector and poverty in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aenergy-development-poverty-nepal) — Energy Environment and Society, chapter 2 ## Related in other subjects - [Biogas plants under Clean Development Mechanism](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Abiogas-cdm-ghg) — Power Plant Design, chapter 1, asked 2× - [Areas of utilization of electrical energy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Futilization_of_electrical_energy%3Autilization-areas-nepal-improve-consumption) — Utilization of Electrical Energy, chapter 1 - [Status of irrigation development in Nepal](https://www.bctengineer.com/question.md?key=semester_6%2Firrigation_and_drainage_engineering%3Airrigation-status-nepal) — Irrigation and Drainage Engineering, chapter 1, asked 4× - [Historical development of roads in Nepal](https://www.bctengineer.com/question.md?key=semester_6%2Ftransportation_engineering_i%3Ahistorical-development-roads) — Transportation Engineering I, chapter 1, asked 2×